Forex Signals Brief for Oct 6: Trump Returns and Markets Rally - Forex News by FX Leaders
Trump in Focus

Forex Signals Brief for Oct 6: Trump Returns and Markets Rally

Posted Tuesday, October 6, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

Whether or not the market rally was on the back of a Trump return from hospital remains to be seen, but either way, things are shaping up for a big few weeks.

As mentioned yesterday, much of the interest around Trump and his battles with COVID, centre on the likelihood of his re-election. There is also the other issue of more fiscal stimulus, which many feel Trump might be more forthcoming with given what he’s been through.

Nevertheless, equities closed the session up around 2%, while the likes of the USD and JPY fell away on a move back towards risk.

The Data Agenda

While most of the focus is on Trump and what is happening in the US, there are also some interesting central bank speakers that will be appearing today.

The most important speaker in Europe is clearly the ECB boss Christine Lagarde and her comments will always be market-moving for the EUR/USD. There has been talk that the ECB could adjust its inflation target similar to the US, so that is one to watch.

Otherwise, the bulk of the speakers are from the Fed including Jerome Powell, which comes ahead of the FOMC minutes this week as well.

Data wise we look to construction PMI for the UK and the GBP/USD, while WTI traders will want to see the latest EIA Short-Term Energy Outlook.

 

Forex Signal Update

The FX Leaders Team hit 1 winner from 4 trades yesterday, with a number of positions still open currently.

Keep watching the forex signals page as volatility could be high and there should be more opportunities ahead.

 

USD/JPY – Active Signal 

The USD/JPY is pushing higher. But has a strong downtrend above. We are looking for price to test that trendline.

USD/JPY
USD/JPY – 240min.

 

EUR/USD – Pending Signal 

The EUR/USD rallied yesterday along with other risk assets, however, we will be waiting for any weakness and certainly a break of the 1.1700 level.

EUR/USD
EUR/USD – 240min.

 

Cryptocurrency Update

BTC has been following the risk trade higher and is once again looking like it wants to test the $11,000 level.

As mentioned yesterday, we are seeing a series of higher lows and we there is a clear uptrend in play.

BTC
BTC – 240min.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments